Zensar, Coforge, Persistent Systems Rally Up To 12%; IT Stocks Shine On Q3 Cheer
IT Stocks Rally: All but one of the 10 constituents in the index saw gains ranging from 2% to 12%
Shares of IT companies Coforge (formerly NIIT Technologies) and Persistent Systems and Zensar Technologies saw strong demand on Thursday, with their stock prices jumping by up to 12% in early trading.
Investors responded positively to their December quarter earnings, which surpassed Wall Street expectations, driving a boost in the Nifty IT index. These stocks emerged as top gainers within the Nifty IT sector, helping push the index up by over 2%. All but one of the 10 constituents in the index saw gains ranging from 2% to 12%, with HCLTech dipping by up to 0.6%.
related stories
Among the largest companies, TCS and Infosys showed modest gains of up to 0.5%, following the trend of benchmark indices Sensex and Nifty, which rose by 0.25%.
Coforge shares surged 11.8%, reaching Rs 9,198.20 on the BSE, bringing its market capitalization to Rs 61,198 crore. The stock is nearing its 52-week high of Rs 10,017.95, achieved on December 30, 2024, nearly doubling from its 52-week low of Rs 4,291.05 on May 9, 2024.
Persistent Systems saw a 10% increase, rising to Rs 6,253.85 on the BSE and reaching a market cap of Rs 96,630 crore. The stock had hit a 52-week high of Rs 6,788.80 on December 20, 2024, after trading as low as Rs 3,232.60 in June 2024. Over the past year, the stock has delivered a 50% return, though it has lost over 3% year-to-date (YTD).
Similarly, the shares of Zensar Technologies zoomed nearly 10% to an intraday high of Rs 846.85 on the BSE today after announcing its financial results for Q3FY25 on Wednesday,
Coforge reported impressive earnings in a typically slower December quarter, with a 10.3% increase in net profit to Rs 2,680 crore for Q3 FY25, up from ₹2,428 crore in the same quarter the previous year. Revenue surged 42.8% to Rs 3,318.2 crore, while EBITDA rose by 29.3% to Rs 519 crore.
For the second consecutive quarter, Coforge secured over $500 million in order intake, including four large deals during the October-December period. Its order book, executable over the next 12 months, saw a 40.1% YoY growth, reaching $1,365 million. The company also declared an interim dividend of Rs 19 per share, with the record date set for January 30, 2025.
In addition, Coforge announced its acquisition of a 100% stake in U.S.-based Xceltrait Inc. for $17.85 million.
On the other hand, Persistent Systems saw a 30.4% YoY growth in net profit, totaling Rs 373 crore for Q3 FY25, driven by its AI-led, platform-driven services strategy. Consolidated revenue grew 22.6% YoY to Rs 3,062.28 crore, and operating margins improved by 90 basis points to 14.9%.
Persistent also declared an interim dividend of Rs 20 per share and secured $594.1 million in total contract value (TCV) for the quarter, with $428.3 million in annual contract value (ACV).
Zensar Technologies delivered a solid performance, with revenue rising to Rs 1,325.6 crore, marking a 10.1% year-on-year (YoY) increase.
For the quarter, the company reported an EBITDA of Rs 207 crore and an EBIT of Rs 183.3 crore.
However, Zensar’s profitability saw a slight dip, with net profit falling by 2.7% YoY to Rs 159.8 crore, compared to Rs 161.7 crore in the same quarter last year.
Additionally, Zensar posted operating revenue of $157 million for the third quarter of fiscal year 2025.
- Location :
- First Published: